Israel's army spokesman Yoav Mordechai said Israel would continue shelling Gaza throughout talks for a ceasefire, the Israeli news site Ynet reported.

"The (Israeli army) will proceed with the operation and the strikes today, at the same time that political dialogue is taking place," Mordechai said.

US Secretary of State Hillary Clinton held talks in Jerusalem in the early hours of Wednesday, seeking a truce that can hold back Israel's ground troops.

Clinton is due to meet President Mahmoud Abbas in Ramallah on Wednesday.

Egypt is mediating talks and had floated hopes for a ceasefire by late Tuesday between Israel and Hamas. However, by the time Clinton met Israeli Prime Minister Benjamin Netanyahu, it was clear there would be more argument, and more violence, first.

Hamas leaders in Cairo accused Israel of failing to respond to proposals and said an announcement on holding fire would not come before daylight on Wednesday. Israel Radio quoted an Israeli official saying a truce was held up due to "a last-minute delay in the understandings between Hamas and Israel."

An initial halt to attacks may, however, not see the sides stand their forces down from battle stations immediately. Clinton, who flies to Cairo to see Egyptian President Mohamed Mursi later on Wednesday, spoke of a deal "in the days ahead."

As Clinton arrived in Israel after nightfall, Israel was stepping up its bombardment from air and sea. At one point munitions slammed into Gaza at a rate of one every 10 minutes.

The Israeli army said it hit "dozens of terror infrastructure sites throughout the Gaza Strip" overnight including the Ministry of Internal Security, a police compound and tunnels used to transport fuel.

"Israeli Navy soldiers targeted a rocket launching site, a Hamas post and a structure used for Hamas' terror activity," the army added in a statement.

In southern Gaza, Israel bombed the al-Karama security compound, west of Rafah, and flattened the police station in Khan Younis, also damaging several buildings in its vicinity.

The Abu Khadra government building in central Gaza City was hit multiple times. The attack also damaged the offices of Al Jazeera and The Associated Press.

Rocket fire from Gaza waned overnight but resumed before dawn on Wednesday with six launches, Israel said. No one was hurt.

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